Specialist Manufacturing Sector: Regional Economies Debate

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Department: Department for Business and Trade

Specialist Manufacturing Sector: Regional Economies

Josh Fenton-Glynn Excerpts
Wednesday 19th November 2025

(1 day, 11 hours ago)

Westminster Hall
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Josh Fenton-Glynn Portrait Josh Fenton-Glynn (Calder Valley) (Lab)
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I beg to move,

That this House has considered the contribution of the specialist manufacturing sector to regional economies.

It is an honour to serve under your chairmanship, Mrs Harris, and a privilege to open this debate on the contribution of the specialist manufacturing sector to regional economies. The number of colleagues who have joined us this early on a Wednesday morning is a mark of just how important this issue is to so many constituencies.

Manufacturing is the backbone of our economy. This country is unique. We do not mass-produce rubbish; we make specialist things that only our foundries and factories can produce. Decent manufacturing brings good jobs but also economic power to our country. Manufacturing contributed £217 billion in output to the economy last year—nearly 10% of GDP—and supported 2.6 million jobs.

Calder Valley has manufacturing in its history. The story started with wool, but has developed into chemicals and specialist manufacturing. As new businesses opened in old mills, we also focused on particular industries. Calder Valley has long been known for its engineering. We are home to what many call valve valley, a cluster of more than 20 firms that design, build and service valves that are used across the world. In the valve community, which I mainly discovered after becoming an MP, Brighouse and Elland are central hubs. These companies are not household names, but they are businesses that keep industry moving, from energy to water to pharmaceuticals. They employ local people, train apprentices and anchor our economy in towns that too often feel overlooked.

When I visit manufacturing and engineering firms in Calder Valley, I see the same thing again and again: highly skilled workers who are proud of the worldwide reach of their products, from 60% of water in New York city travelling through valves made in Brighouse to oil rigs in the North sea being made safer because of the expertise of workers in a West Yorkshire factory. I see innovation, with companies investing in new technology and tapping into various sectors such as defence, renewables and nuclear. I see resilience, because these businesses have survived downturns and global shocks, yet they continue to provide good jobs in Calder Valley.

But we cannot ignore the fact that the numbers working in manufacturing are falling. As of 2024, 15% of jobs in Calder Valley are in the manufacturing sector, compared with a national average of 7%, but that share has been declining. In 2007, just under a quarter of jobs in Calder Valley were in manufacturing. From the financial crisis to Brexit and the Tories’ disastrous deal, the past couple of decades have ripped the heart out of our manufacturing industry.

We will hear a lot in the next few weeks about growth and so forth. It will come as a relief to many Members that I am not in the Treasury, so rather than talking about statistics, I will share what local manufacturers tell me. They tell me that their order book has never been so bad, because of the impact of tariffs. The lack of stability means companies are not making long-term decisions that would see them step up. That is why we need a strong domestic manufacturing sector, but it is also why we need to be strategic in our support for the industry and how we spend our money on the infrastructure that we need to rebuild.

If we are serious about Labour’s promise that two thirds of young people will go to university or achieve a high-level qualification, this is exactly the kind of work we need to encourage. We need to make sure that those qualifications are linked to opportunities in advanced manufacturing, engineering and design. That means working with local authorities and businesses to understand the needs of industry in each region.

Gregory Campbell Portrait Mr Gregory Campbell (East Londonderry) (DUP)
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I congratulate the hon. Member on securing this debate. On the point about training and upskilling, does he agree that we need to do more to develop the skills and competitiveness of our manufacturing base, and that that needs to spread beyond the large cities so that smaller towns and their residents can benefit?

Josh Fenton-Glynn Portrait Josh Fenton-Glynn
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The hon. Gentleman is absolutely correct. The point about smaller towns is so important, because as well as creating brilliant jobs in the smaller economy where they will make a difference, they give a sense of place and value to what we produce. People are proud of what their town produces, whether it is valves or textiles, and they think of those things as defining their town. That commitment is something that only a small town can offer, and it really makes a difference.

Businesses in this country are ready to grow, but they need support with skills, infrastructure and investment. They need to know that their order book is guaranteed for the long term. The Government have made really positive noises about encouraging skilled apprenticeships; that is welcome, but apprenticeships work only if the companies can afford to hire and train young people. We need to ensure that small and medium-sized manufacturers, which are the lifeblood of Calder Valley and other small towns, have the support that they need to take on apprenticeships without being too financially stretched.

In September, I visited the Brighouse-based training charity West Yorkshire Manufacturing Services, as part of National Manufacturing Day. It showcased a range of firms in Calder Valley to school students. I also met Stuart Billingham, who is set to become the managing director of KOSO Kent Introl next year. The company, founded in Brighouse, employs about 150 people and exports specialist valves across the world. Stuart started at 16 on a youth training scheme and has worked his way up the company to become its managing director. His journey is a brilliant example of how skills and apprenticeships can lead to as rewarding, lucrative and challenging a career, with as massive a global impact, as we are often told that universities can. It shows that those careers have progression and responsibility. I want this Government to produce 1,000 Stuarts, albeit that some of his close friends might not want that many Stuarts.

At that event, there was so much interest from young people and so much curiosity about the opportunities that a career in manufacturing could bring. That spark of curiosity must be nurtured into a flame of ambition, especially at a time when too many young people feel pressured into pursuing degrees that may not suit them or lead to secure employment.

John Slinger Portrait John Slinger (Rugby) (Lab)
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I praise my hon. Friend for securing this important debate. On apprenticeships, I wonder whether he would care to comment on the excellent work of the Catapult centres, which are Government-funded and which work collectively between business and academia. In my constituency of Rugby, at Ansty Park, we have the Manufacturing Technology Centre, which has its own training facility. It has already trained 1,200 apprentices. That can only be a good thing for our region, and particularly for our young people who want to get on and get jobs.

Josh Fenton-Glynn Portrait Josh Fenton-Glynn
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Yes, 1,200 apprenticeships is 1,200 decent jobs and 1,200 families who have pride that their son or daughter will make a real difference and make products that make it around the world. That is why this matters.

Only 14% of apprenticeships that started in the past academic year were in engineering and manufacturing, however. The Institution of Engineering and Technology has reported that engineering faces one of the largest skills shortfalls in the economy, with more than 46,000 vacancies in the sector. Similarly, the welding industry needs 35,000 more people. That is the key to growth. It represents a real opportunity to support young people into secure, well-paid work. Without it, our manufacturing sector will be in trouble.

Alistair Carmichael Portrait Mr Alistair Carmichael (Orkney and Shetland) (LD)
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I agree with everything that the hon. Gentleman is saying, but may I encourage him to go one step upstream and look at some of the wider policy context? If we are to regrow our manufacturing base, as we absolutely need to, we have to accept that it will be about future technologies, not just replacing what we had in the past. In my constituency, the development of tidal energy offers a supply chain of 80% UK product, which would then be exportable. If we could capture that, we would have something special—but for that to happen, we need a better policy framework to come out of the Department for Energy Security and Net Zero.

Josh Fenton-Glynn Portrait Josh Fenton-Glynn
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We have to be really bold. We need to look at our future-focused industries and at what we specialise in. The right hon. Gentleman talks about tidal energy, but we will not be able to produce that without a load of specialist valves. I want to ensure that they are built in Calder Valley and go throughout the country. That is what this debate is about: we need to plan and think, but we also need to look at what we do well.

The imbalance between small and large manufacturing companies is accentuated by the fact that larger companies often secure Government contracts, particularly in defence. Not only does that provide them with guaranteed revenue, but it often allows them to poach skilled staff from smaller firms that cannot compete with the salaries and the security that those contracts bring. Yorkshire and the Humber received the least defence spending per person, despite the fact that across our region we have a manufacturing sector that is eager to grow and develop.

Sarah Dyke Portrait Sarah Dyke (Glastonbury and Somerton) (LD)
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The hon. Gentleman is making an excellent speech. As he knows, the south-west has a brilliant, large defence-related manufacturing sector. Needles and Pins Aerospace is a small, women-led business based in Somerton that provides precision textile engineering for aviation and defence. It should be entitled to the same opportunities to compete on a level playing field for the larger contracts. Does he agree that if the Government are prioritising value and security, they should offer equal commercial opportunities to UK businesses and supply chains in respect of defence and security-related manufacturing contracts?

Josh Fenton-Glynn Portrait Josh Fenton-Glynn
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I absolutely agree. The Defence Office for Small Business Growth—I believe it will open in January, but the Minister will know better than me—will be a great opportunity to grow businesses such as Needles and Pins Aerospace in the hon. Lady’s constituency and the many businesses in my constituency that want to get into the defence industry. She is right that the south-east does very well out of defence. In fact, the defence industry supports 85,000 direct jobs in the south of England, but just 3,750 in Yorkshire and the Humber.

As part of the Government’s mission to make defence an engine for growth, there should be a concerted effort to spread its benefits across the regions and our small towns, as the hon. Member for East Londonderry (Mr Campbell) said. We will grow this economy only if the Government interact with industry, including in Calder Valley and West Yorkshire, in a way that encourages competition rather than dominance. Smaller manufacturers are equally vital and are a sign of a balanced and resilient economy. They must be supported if we are serious about building the balanced and resilient industrial base that we really need.

Valve manufacturing is a reminder that regional economies thrive when we back specialist sectors. It is not about chasing the latest fad; it is about recognising and building on our strengths. In Calder Valley, that means supporting our manufacturers with a skills pipeline, and with the apprenticeships and investment that they need to grow. We can use the power of the public purse to do that, but—I will be honest—we have failed to do that over multiple years and multiple Governments. The new nuclear power station at Hinkley Point has more than 100,000 valves, but they are all made in China. The only company in Calder Valley that has benefited is the company that fixes faulty valves, because the quality is not as good as that of British-made valves. If we expect other countries to use our high-quality valves in manufacturing, our Government must lead by example.

This is about the pride that people feel when they know that something they made in their town is used in projects around the world. It is about the contribution that specialist manufacturing makes to identity as well as GDP. It is about ensuring that places such as Calder Valley are not left behind, but are recognised as central to Britain’s industrial future.

I will finish by making a few points directly to the Minister. In Calder Valley, we know how vital apprenticeships are, yet only 14% of apprenticeships last year were in engineering and manufacturing; what will the Government do to ensure that new training opportunities match the skills shortages that we face, such as those in welding and advanced engineering? Our small and medium-sized manufacturers are the lifeblood of towns such as Brighouse; how will Government support for apprenticeships and investment reach those firms rather than being skewed towards the largest players? Defence strategic procurement could be a real engine for growth in places such as Calder Valley; will the Minister set out how contracts will be used to back British industry, particularly in specialist sectors such as valve manufacturing and precision engineering?

None Portrait Several hon. Members rose—
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--- Later in debate ---
Josh Fenton-Glynn Portrait Josh Fenton-Glynn
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I thank all Members for the tour we had of the UK, with a particular focus on Stoke-on-Trent. My hon. Friend the Member for Stoke-on-Trent South (Dr Gardner) talked about specialist ceramics, my hon. Friend the Member for Stoke-on-Trent Central (Gareth Snell) talked about Bakewell tarts and the saucers on which they are placed, and my hon. Friend the Member for Stoke-on-Trent North (David Williams) talked about the clusters that really make a difference. We heard from my hon. Friend the Member for Huddersfield (Harpreet Uppal) about textiles, and from the hon. Member for Strangford (Jim Shannon) about the huge role Northern Ireland plays. We heard from my hon. Friend the Member for Scarborough and Whitby (Alison Hume) about things produced there that go to the bottom of the sea, and from the hon. Member for Tiverton and Minehead (Rachel Gilmour) about products that go into space. All of that leads us to understand the pride that people have when they produce things—when they make something in a factory in a town in the UK and it can go anywhere. That is why our manufacturing services are so important and why we need to make sure that we get the absolute most out of them.

I will resist talking more about brass bands, although the Minister tempted me to do so, but I will take him up on what he said about wanting to understand more about the valve industry. He is welcome to visit me in Calder Valley so that I can show him some of the things we do better than anywhere else in the world.

Question put and agreed to.

Resolved,

That this House has considered the contribution of the specialist manufacturing sector to regional economies.